Qatargas today signed an Engineering, Procurement and Construction (EPC) contract with Samsung Engineering Ltd. for a Diesel Hydrotreater (DHT) Unit that will treat 54,000 barrels per stream day (BPSD) of diesel, from high-sulfur into ultra low-sulfur diesel fuel, at the Laffan Refinery. The Laffan Refinery, which started production in September 2009 and is operated by Qatargas, is one of the largest condensate refineries in the world and the first of its kind in Qatar.

The contract was formally signed by His Excellency Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy and Industry and Chairman of the Qatargas and Laffan Refinery Boards of Directors, and Mr. Park Ki-Seok, President and Chief Executive Officer of Samsung Engineering Ltd. Also present on the occasion were Khalid Bin Khalifa Al Thani, Chief Executive Officer of Qatargas and Vice Chairman & Chief Executive Officer of Laffan Refinery Company, Qatar Petroleum Board members, senior officials of Qatargas, top management from Samsung Engineering Ltd., and representatives of the Laffan Refinery shareholders.

Commenting on this major project, His Excellency Dr. Mohammed Bin Saleh Al-Sada said:
“This project forms part of Qatar’s National Vision, as laid down by His Highness the Emir Sheikh Hamad Bin Khalifa Al-Thani, for securing efficient energy supplies for the country meeting the most stringent environmental specifications, Euro 5, and contributing towards clean global energy security. The surplus production will be exported, making it the latest addition to the State of Qatar’s existing export portfolio in the energy sector. The planned start-up of this project is the first quarter of 2014 at a cost of around QR 350 million.”

Khalid Bin Khalifa Al Thani said:
“This is a very significant milestone for our Laffan Refinery, which is already undergoing an ambitious expansion drive to double its capacity of 146,000 BPSD. I’m particularly pleased about this collaboration with Samsung Engineering for the development of this Diesel Hydrotreater Unit as it represents one of the many ways through which we continue to demonstrate our highest standard of environmental management.”

Mr. Park Ki-Seok, President and Chief Executive Officer of Samsung Engineering Ltd., said:
“It is a privilege to be awarded the Laffan Refinery DHT Unit project from Qatargas, the largest LNG producer in the world. We are excited to fortify this new partnership by delivering the project on time and safely. This being our first project in Qatar, Samsung Engineering is determined to make a positive and lasting impression to the client and to the country.”

The DHT Unit, which is aiming to produce diesel with less than ten parts per million (ppm) sulphur content with the Euro 5 specification, will be built and integrated into the existing Laffan Refinery by 2014. The DHT Unit will process straight run Light Gas Oil (LGO) feedstock from the existing Laffan Refinery 1 (LR1) and the second planned refinery (LR2).

The DHT Unit has a processing capacity of 54,000 BPSD. Until the second refinery is operational, the DHT Unit will run at 50 per cent of its designed capacity. Occasionally, when the existing kerosene hydrotreater is shut down either for maintenance or catalyst replacement, the DHT Unit will also be able to treat the straight-run LGO from the kerosene condensate fractionation unit. The DHT Unit will be installed inside the plot of LR1, which is located in Ras Laffan Industrial City (RLIC) in Qatar.

The DHT Unit project is being developed by Laffan Refinery Company, which is operated by Qatargas. The shareholders in the joint venture include Qatar Petroleum (84%), Total (10%), Idemitsu (2%), Cosmo (2%), Mitsui (1%) and Marubeni (1%).

The Laffan Refinery, with its processing capacity of 146,000 BPSD, represents a significant achievement by the State of Qatar in the field of optimising condensate production. Engineering work is currently being undertaken for a second condensate Laffan Refinery (LR2), which will have the same capacity and will be constructed on an adjacent plot. The DHT Unit is designed to process the LGO straight run from both refineries.